CONMED (CNMD) Stock Forecast & Price Target

Conmed Corp demonstrated strong sales growth in its General Surgery segment, which increased by 8.7% to $206.9 million, surpassing the consensus estimate, while its Orthopedic Surgery sales also exceeded expectations with a 2.4% growth to $139.0 million. The company experienced significant improvement in its operating margin, rising 280 basis points year-over-year to 18.6%, driven by gross margin expansion and operating leverage, indicating an efficient cost structure. Additionally, Conmed’s gross margin of 57.6% was above expectations, highlighting its capability to enhance profitability even in a challenging supply chain environment.

Conmed Corp faces a negative outlook primarily due to anticipated revenue growth slowing to 4% or less, stemming from lower-than-expected sales in key products such as AirSeal and Buffalo Filter, along with potential challenges from new product launches. Additionally, management's revised 2025 revenue and earnings per share (EPS) guidance falls below consensus estimates, attributing the decline to ongoing supply chain issues that may further impact operating margins. Furthermore, risks such as weaker revenue growth, disappointing new product sales, and reduced hospital capital spending continue to pose significant challenges for Conmed's financial performance.